Transcorp to scale up power business with $2.5b new investment

Transnational Corporation of Nigeria (Transcorp) Plc will scale up its power business with additional investment of about $2.5 billion as the conglomerate seeks to consolidate the profitability of its businesses.

The board and management of the conglomerate yesterday presented the underlying facts behind its operations to the investing public at the Nigerian Stock Exchange (NSE).

Chairman, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Tony Elumelu, said the conglomerate’s power subsidiary, Transcorp Power Limited, will be investing as much as $2.5 billion in power projects to help boost power supply in Nigeria.

He said the company has so far injected about $1 billion in projects with a combined capacity of 700 megawatts while the company is also bidding for Afam Electricity Generation Company, which operates a natural-gas fired power generation plant in southern Rivers State.

“We have expressed interest in the acquisition of Afam power plant, which we are going to spend a lot of money on. It will give us 1,400 megawatts and we can do more,” Elumelu said.

Chief Executive Officer, Transnational Corporation of Nigeria (Transcorp) Plc, Mr. Valentine Ozigbo, noted that the conglomerate with its investments in hospitality; power, oil and gas and others remains committed to delivering superior value to its shareholders.

He said the focus of the company is to create an enabling environment for domestic and foreign investors to succeed, adding that the conglomerate has been well-positioned to continue to roll out profitably to its numerous investors.

“Today, we own and manage the best business hotel in Africa, and are intent on improving tourism in Nigeria and beyond. We own and manage one of the most strategic power assets in Nigeria, and aim to meet the power needs of one out of every four Nigerians, and through this, help in poverty eradication and improving Nigeria’s competitiveness,” Ozigbo said.

He said the group’s businesses are now contributing unprecedented revenue and profits and the group is also stronger in corporate governance as it consistently ranks among quoted companies that annually successfully finalize their audited accounts and organize their annual general meetings.

He assured that all indications point to a stronger performance in the years ahead.

“The exciting news is that where we are headed is even brighter; we will deepen our play in the sectors we currently operate in. We will operationalise our oil asset and invest in more sectors. And with the support of the stakeholders, especially the entire capital market community, we will be that conglomerate Nigerians will be most proud of,” Ozigbo assured.

Key extracts of the audited report and accounts for the year ended December 31, 2018 showed that Transcorp’s turnover rose by 30 per cent while profits before and after tax grew by 82 per cent and 94 per cent respectively.

Group turnover posted a record growth to N104.2 billion in 2018 compared with N80.28 billion in 2017. Gross profit rose from N36.42 billion in 2017 to N48.25 billion in 2018.